A US community lender group is opposing ’s conditional approval to become a type of bank as crypto companies push deeper into the realm of .
The recent nod to operator Coinbase from the Office of the Comptroller of the Currency (OCC) was a "grave mistake" that threatens consumer safety and allows digital asset companies to skirt rules relating to deposit insurance that govern traditional banks, according to the Independent Community Bankers of America (ICBA).
No deposits or loans allowed
The trust bank charter status that Coinbase may receive doesn't allow for retail deposit-taking or commercial lending, but it does offer other benefits to licensees. These include using the OCC standards to "passport" services nationwide instead of having to apply for state-by-state licences. The charter also gives licensed firms federally supervised custodial status, allowing them to take in large amounts of institutional capital compliantly.
The community banks, which are typically locally owned and operated financial institutions, questioned the authority of the OCC to hand out the licences. They repeated a call to the agency to "withdraw the rule or reissue an amended proposal consistent with its own statutory authority," according to a 2 April statement.
Big banks are also opposed
Large US banks have also voiced opposition to the licences, with the leading banking lobby, the American Bankers Association, urging the OCC to halt all approvals until the regulatory framework for the 2025 is fully implemented.
That implementation of this law has been stalled amid disputes between the banks and digital asset companies over concerns about high-yield rewards luring away deposits from traditional financial institutions.
Five additional nods for crypto firms
The previously reported Coinbase application approval permits Coinbase National Trust Company to be a custodian of digital assets on behalf of clients. The largest US crypto exchange by trading will continue to operate its existing custody business under New York’s BitLicense.
In December 2025, the regulator granted conditional approval to five other national trust bank applications from Circle, , BitGo, Paxos Trust and Fidelity Digital Assets.
